Of late, boating has become a quite popular as a sport,
especially with the newly rich. It has turned out to be pretty relaxing to the
boat owners. The only demerit in boat owning are the tedious and long
procedures involved when acquiring one. One can buy a boat with their own money
or acquire a loan for the same. Obtaining a boat loan is quite hectic as boats
are considered a luxury. Only the most credit-worthy people can be able to get
one. These are the higher income earners in the society. Thus these loans,
becomes the preserve of the rich. Although this may not be the determining
factor for giving out these loans, the lenders who avail the follow
a well laid down formula.
The boat choice
Before applying for the loan, it saves a lot time in first identifying the
model of the boat one wants to purchase. Visit various boat dealers; get the
boat prices and installment information on your choice of boat. Enquire on the
down payment your dealer could do with, the boats maintenance cost and other
information you deem necessary. This information should include the terms to
qualify for your particular choice of a boat. Some boats may require a bigger
loan to purchase while others require a smaller amount.
Do you qualify for the boat loan?
Once you have decided to acquire a boat, the first person you meet is the sales
representative. This sales person will assist in choosing the right boat for the
purchaser and with the correct specifications to meet the loan’s requirements.
They know their customers better and will identify a boat for a particular
buyer. To save time for everybody, the sales person will get hold of all
necessary information on the buyer so as to assist in deciding how much boat
loan they can obtain. They will tell qualify a buyer for the loan in terms of
the amount of money they earn on a monthly base.
Before the loan is advanced, the borrower will have to sit down with the dealer
to fill in their personal information to be submitted to the lender. Such
important information like, the borrowers name, address, telephone number, tax
identification information, total income, credit references, banking information,
employer and any other important information. The dealer may request the
borrower to provide them with a stub of their pay slip to verify their total
income. For self-employed people, they must provide their tax information for
verification. The information requested may vary from one dealer to the other.
Getting and closing the loan deal
Once a borrower has applied and has been approved for a boat loan, the dealer
or the sales person arranges for the return of loan agreement to the lender
with the aim of helping the buyer to sign the sales contract. Before returning
to the sales yard, the buyer should ensure they had secured the boats
insurance. The boat’s docking arrangement must have been made. If the dealer
has storage facilities, the buyer should leave the boat there.
Addy is an
author of Loans n Finance. For more information about and